Looking back at that video I could have done a much better job describing the problem during the movie.
Watch the video in 720 fullscreen.
Before I enable the editing cage I’m just showing everything working fine. After I apply it, in solid and wire I’m showing vert selection not working (or just the highlighting not working). When I turn “Limit selection to visible” off I get everything working as normal in solid mode (until I check that button again), wire is still wrong.
I then fix by extruding once.
As far as the face selection, I know that has been like that forever. It’s still weird, and I can think of no reason for that behavior. It is a different colored face in my mesh that always seems distract me.
I have learned to work around it, but I thought I would bring it up since I was already making a video.
And for the Plane extrude and zoom out thing, I really have no idea what to call that. Occlusion or something? Myabe a plane isn’t set solid or I don’t know.
All of these things happen in alpha2 up to 29574. In trunk and the sculpt branches. Have not tried render yet.
(After rereading the thread, my problem and that of the op are not the same. Not sure why I posted in here.) Sorry for the hijack